Method B, Posting/Account Category/Segmented
This combination calculates the percent complete for each posting level activity.
The formulas used to calculate the percentage of completion are:
| Gross margin | = | Contract amount | - | Total budgeted costs |
| Gross margin % | = | Gross margin | / | Contract amount |
| Revenue | = | (1 / (1-Gross margin %)) | * | Costs to date |
Example 7 - Method B, Posting/Account Category/Segmented
Because SBC is segmenting this contract, the percentage of completion is calculated for each posting activity at the account category level. Revenue is calculated and posted to the posting level activities and summarized in the higher level activities.